Tag Archives: Steel and Aluminum Tariffs

Association of Equipment Manufacturers (AEM) president Dennis Slater issued the following statement supporting the Trump Administration’s decision to end tariffs on steel and aluminum from Canada and Mexico:
“We are encouraged by the Trump Administration’s decision to end tariffs on steel and aluminum from Canada and Mexico. Today’s action responds to the concerns voiced by equipment manufacturers and we strongly support it,” said Dennis Slater, president of AEM. “But there is still a lot that must be done to better support equipment manufacturers and the 1.3 million men and women of our industry. While today’s decision helps our member companies conduct business in North America, we are urging Congress to immediately ratify the United States Mexico Canada (USMCA) agreement. By doing so, Congress will preserve duty-free access to our industry’s largest export markets, Canada and Mexico, and help our farmers sell more of their products at a time of incredible economic difficulty.
Slater continued, “We also continue to urge the President to completely remove all steel and aluminum tariffs on America’s other trading partners around the world, and end all the protectionist tariffs hurting U.S. farmers, American families, and our national economy. We need our elected officials to make it easier, not more difficult, for American businesses, manufacturers and farmers to be competitive in a 21st century global marketplace.”

The Trump administration today announced plans to lift the 25% tariff on steel and the 10% duty on aluminum imports imposed last year on Canada and Mexico. Both countries subsequently retaliated against a host of U.S. products.

“We thank the administration for ending a trade dispute that has placed enormous financial strain on American pork producers,” said David Herring, a pork producer from Lillington, N.C., and president of the National Pork Producers Council. “Mexico’s 20% retaliatory tariff on U.S. pork has cost our producers $12 per animal, or $1.5 billion on an annualized, industry-wide basis. Removing the metal tariffs restores zero-tariff trade to U.S. pork’s largest export market and allows NPPC to focus more resources on working toward ratification of the U.S.-Mexico-Canada Agreement (USMCA), which preserves zero-tariff trade for U.S. pork in North America.”

Last year, Canada and Mexico took over 40% of the pork that was exported from the United States. NPPC has designated USMCA ratification as a “key vote” and will closely monitor support of the agreement among members of Congress. U.S. pork exports to Mexico and Canada support 16,000 U.S. jobs.

“We are also hopeful that the end of this dispute allows more focus on the quick completion of a trade deal with Japan,” Herring added. “U.S. pork is losing market in its largest value market to international competitors that have recently implemented new trade agreements with Japan.”

According to Dr. Dermot Hayes, an economist at Iowa State University, U.S. pork will see exports to Japan grow from $1.6 billion in 2018 to more than $2.2 billion over the next 15 years if the U.S. quickly gains access on par with international competitors. Hayes reports that U.S. pork shipments to Japan will drop to $349 million if a trade deal on these terms is not quickly reached with Japan.